Economic Instability and Global Market Fluctuations in 2023: Analyzing Causes, Impacts, and Policy Responses

  • Tekat Sukomardojo Politeknik Penerbangan Surabaya, Indonesia
  • Ateng Kusnandar Adisaputra UIN Sunan Gunung Djati Bandung, Indonesia
  • Pandu Adi Cakranegara Universitas Presiden, Bekasi, Indonesia
  • Marsha Ayunita Irawati Sekolah Tinggi Ilmu Ekonomi (STIE) Semarang, Indonesia
  • Totok Hendarto Universitas Dr. Soetomo, Surabaya, Indonesia
Keywords: Economic Instability, Market Fluctuations, Policy.

Abstract

The economic instability and global market fluctuations that will occur in 2023 have created various complex economic challenges and have far-reaching impacts. These dynamics are influenced by various factors, including monetary and fiscal policies, the impact of the COVID-19 pandemic, geopolitical conflicts, and changes in commodity prices. The impact of this instability can be seen in financial markets, macroeconomics, business and industrial sectors, and has significant socio-economic consequences. This research aims to analyze the causes, impacts, and policy responses to economic instability and global market fluctuations in 2023. The method used is a descriptive qualitative approach with data obtained from various relevant research results or previous studies. Data processing is carried out carefully to ensure accurate and in-depth analysis. The results of this research show that the combination of the impact of monetary and fiscal policies, the ongoing influence of the COVID-19 pandemic, geopolitical dynamics, and changes in commodity prices have contributed to global economic instability. This impact is manifested in financial market volatility, macroeconomic disruption, as well as impacts on business and industrial sectors. Socioeconomic consequences such as increasing poverty and income inequality underscore the need for effective policy responses. The policy responses taken include monetary policy strategies, fiscal measures, structural reforms, and international cooperation.

References

Ahmed, M. Y., & Sarkodie, S. A. (2021). COVID-19 pandemic and economic policy uncertainty regimes affect commodity market volatility. Resources policy, 74, 102303.

Boufateh, T., & Saadaoui, Z. (2021). The time-varying responses of financial intermediation and inflation to oil supply and demand shocks in the US: Evidence from Bayesian TVP-SVAR-SV approach. Energy Economics, 102, 105535.

Coccia, M. (2022). Preparedness of countries to face covid-19 pandemic crisis: Strategic positioning and underlying structural factors to support strategies of prevention of pandemic threats. Environmental Research, 203(111678), 10-1016.

Dirani, K. M., Abadi, M., Alizadeh, A., Barhate, B., Garza, R. C., Gunasekara, N., ... & Majzun, Z. (2020). Leadership competencies and the essential role of human resource development in times of crisis: a response to Covid-19 pandemic. Human resource development international, 23(4), 380-394.

Dwivedi, Y. K., Sharma, A., Rana, N. P., Giannakis, M., Goel, P., & Dutot, V. (2023). Evolution of artificial intelligence research in Technological Forecasting and Social Change: Research topics, trends, and future directions. Technological Forecasting and Social Change, 192, 122579.

Gupta, V., Santosh, K. C., Arora, R., Ciano, T., Kalid, K. S., & Mohan, S. (2022). Socioeconomic impact due to COVID-19: An empirical assessment. Information Processing & Management, 59(2), 102810.

Hilbert, M., & Darmon, D. (2020). How complexity and uncertainty grew with algorithmic trading. Entropy, 22(5), 499.

Hussain, S. A., Razi, F., Hewage, K., & Sadiq, R. (2023). The perspective of energy poverty and 1st energy crisis of green transition. Energy, 275, 127487.

Khan, K., Khurshid, A., & Cifuentes-Faura, J. (2023). Investigating the relationship between geopolitical risks and economic security: Empirical evidence from central and Eastern European countries. Resources Policy, 85, 103872.

Kiseľáková, D., Filip, P., Onuferova, E., & Valentiny, T. (2020). The impact of monetary policies on the sustainable economic and financial development in the euro area countries. Sustainability, 12(22), 9367.

Korley, M., & Giouvris, E. (2021). The regime-switching behaviour of exchange rates and frontier stock market prices in Sub-Saharan Africa. Journal of Risk and Financial Management, 14(3), 122.

Luiz, J. M., & Barnard, H. (2022). Home country (in) stability and the locational portfolio construction of emerging market multinational enterprises. Journal of Business Research, 151, 17-32.

Ma, Y., & Lv, L. (2023). Financial development, financial instability, and fiscal policy volatility: International evidence. The North American Journal of Economics and Finance, 64, 101873.

Mawejje, J., & Odhiambo, N. M. (2021). Uganda's fiscal policy reforms: What have we learned?. Public Budgeting & Finance, 41(2), 89-107.

Nandi, S., Sarkis, J., Hervani, A. A., & Helms, M. M. (2021). Redesigning supply chains using blockchain-enabled circular economy and COVID-19 experiences. Sustainable Production and Consumption, 27, 10-22.

Olamide, E., Ogujiuba, K., & Maredza, A. (2022). Exchange rate volatility, inflation and economic growth in developing countries: Panel data approach for SADC. Economies, 10(3), 67.

Rabbani, M. R., Bashar, A., Nawaz, N., Karim, S., Ali, M. A. M., Rahiman, H. U., & Alam, M. S. (2021). Exploring the role of islamic fintech in combating the aftershocks of covid-19: The open social innovation of the islamic financial system. Journal of Open Innovation: Technology, Market, and Complexity, 7(2), 136.

Sarosa, S. (2021). Analisis data penelitian kualitatif. Pt Kanisius.

Shahzad, U., Mohammed, K. S., Tiwari, S., Nakonieczny, J., & Nesterowicz, R. (2023). Connectedness between geopolitical risk, financial instability indices and precious metals markets: Novel findings from Russia Ukraine conflict perspective. Resources Policy, 80, 103190.

Talbi, D., Chaibi, H., & Maoueti, A. (2022). Political uncertainty, financial crises, and stock market volatility: Evidence from MENA region. Journal of Public Affairs, 22, e2783.

Tarkom, A., & Ujah, N. U. (2023). Global policy uncertainty and working capital management: Does national culture matter?. Technological Forecasting and Social Change, 196, 122869.

Thakkar, A., & Chaudhari, K. (2021). A comprehensive survey on deep neural networks for stock market: The need, challenges, and future directions. Expert Systems with Applications, 177, 114800.

Tung, R. L., Zander, I., & Fang, T. (2023). The Tech Cold War, the multipolarization of the world economy, and IB research. International Business Review, 102195.

Van Veldhoven, Z., & Vanthienen, J. (2022). Digital transformation as an interaction-driven perspective between business, society, and technology. Electronic Markets, 32(2), 629-644.

Woo, K. Y., Mai, C., McAleer, M., & Wong, W. K. (2020). Review on efficiency and anomalies in stock markets. Economies, 8(1), 20.

Published
2024-02-06
How to Cite
Sukomardojo, T., Adisaputra, A. K., Cakranegara, P. A., Irawati, M. A., & Hendarto, T. (2024). Economic Instability and Global Market Fluctuations in 2023: Analyzing Causes, Impacts, and Policy Responses. International Journal of Science and Society, 6(1), 799-809. https://doi.org/10.54783/ijsoc.v6i1.1065